Shipping has a new acronym. COSCOCS is the abbreviated name for the brand new China Cosco Shipping Corporation – the world's largest shipping line.

Xu Lirong, the chairman of the Cosco/China Shipping merged entity, told reporters at the firm's unveiling, that mergers are vital to tide out the downturn in the industry. Xu was speaking in Shanghai where the new company is now headquartered.

"The Baltic Dry Index has been hitting historical lows every day. This is the most difficult period that we are experiencing since the financial crisis," said Xu.

"Our two firms had similar operations, we did not have many advantages in the various sectors we operate in and could not count on economies of scale…The merger is crucial to the development of both companies," he added.

Online pricing portal VesselsValue.com shows that the merged company has 830 owned vessels, twice as many as AP Moller Maersk and Mitsui OSK Lines combined.

Another Chinese shipping merger – between China Merchants and Sinotrans & CSC – is also underway as Beijing pursues efficiencies among state-run firms.